Chapter Objectives
      Explain the importance of pricing and how 
        prices marketers set objectives for pricing 
        strategies
      Describe how marketers use costs, demands, 
        revenue and the pricing environment to make 
        pricing decisions
      Understand key pricing strategies and tactics
      Understand the opportunities for Internet pricing 
        strategies
      Describe the psychological, legal, and ethical 
        aspects of pricing
     © 2012 Pearson Education, Inc. publishing as Prentice-Hall.  11-2
             What is the “Price?” 
      Price:  The assignment of value, or the 
        amount the consumer must exchange to 
        receive the offering
        • Includes money, goods, services, favors, 
           votes, or anything else that has value to 
           the other party
        • Opportunity costs must also be 
           considered (the value of something we 
           give up to obtain somthing else)
     © 2012 Pearson Education, Inc. publishing as Prentice-Hall.  11-3
                          Figure 11.1
          6 Steps of Price Planning
     © 2012 Pearson Education, Inc. publishing as Prentice-Hall.  11-4
                          Figure 11.2
          Step 1-Pricing Objectives
     © 2012 Pearson Education, Inc. publishing as Prentice-Hall.  11-5
                          Figure 11.3
         Factors in Price Setting 
     © 2012 Pearson Education, Inc. publishing as Prentice-Hall.  11-6